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Divestitures and Assets Held for Sale
 9 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Divestitures and Assets Held for Sale Divestitures and Assets and Liabilities Held for Sale
Divestiture
Copper Rock Capital Partners LLC
On July 24, 2020 BrightSphere completed the sale of all of its equity interests in Copper Rock to Spouting Rock Asset Management LLC. The Company recognized a pre-tax gain of $7.2 million during the three and nine months ended September 30, 2020, respectively.
Assets and Liabilities Held for Sale
Barrow Hanley
On July 26, 2020, the Company and Barrow Hanley entered into a purchase and sale agreement with Perpetual, pursuant to which Perpetual agreed to purchase all of the Company’s interests in Barrow Hanley in exchange for $319 million of cash consideration, on a cash-free, debt-free basis, subject to certain customary closing and post-closing adjustments. The assets and liabilities of Barrow Hanley have been classified as held for sale as the criteria for held for sale accounting treatment was met and are presented separately in the Company’s Condensed Consolidated Balance Sheet. As of September 30, 2020, the Company had assets of $151.0 million and liabilities of $80.4 million of Barrow Hanley classified as held for sale. The transaction is expected to close in the fourth quarter of 2020. Operational information for Barrow Hanley is included in the Company’s Liquid Alpha segment for the three and nine months ended September 30, 2020 and 2019, respectively. Barrow Hanley’s income from continuing operations before taxes was $9.6 million and $20.4 million for the three months ended September 30, 2020 and 2019, respectively. Barrow Hanley’s income from continuing operations before taxes was $33.1 million and $60.5 million for the nine months ended September 30, 2020 and 2019, respectively. The Company also holds seed investments of $17.1 million in Barrow Hanley’s investment products as of September 30, 2020 which will be redeemed upon consummation of the sale.
The major classes of assets and liabilities comprising the Affiliate classified as held for sale are as follows at September 30, 2020 (in millions):
September 30,
2020
Cash and cash equivalents$12.2 
Investment advisory fees receivable21.5 
Investments, at fair value27.0 
Goodwill76.1 
Right of use assets12.4 
Other Assets1.8 
Affiliate assets held for sale$151.0 
Accounts payable and accrued expenses$3.0 
Accrued incentive compensation8.3 
Other compensation liabilities56.4 
Operating lease liabilities12.7 
Affiliate liabilities held for sale$80.4 
Consolidated Funds
The Barrow Hanley purchase and sale agreement provides for the redemption of all of the Company’s seed investments with Barrow Hanley. The redemption will result in the deconsolidation of consolidated Funds considered to be VIEs. The assets and liabilities of the consolidated Funds have been classified as held for sale as the criteria for held for sale accounting treatment was met and are presented separately in the Company’s Condensed Consolidated Balance Sheet. As of September 30, 2020, the Company had assets of $114.3 million and liabilities of $0.1 million for consolidated Funds classified as held for sale. The transaction is expected to close in the fourth quarter of 2020. The consolidated Funds’ operational information is included in the Company’s Statement of Operations for the three and nine months ended September 30, 2020 and 2019. The consolidated Funds’ income from continuing operations was $4.7 million and $1.0 million for the three months ended September 30, 2020 and 2019, respectively. The consolidated Funds’ income from continuing operations was $(2.0) million and $5.4 million for the nine months ended September 30, 2020 and 2019, respectively.
The major classes of assets and liabilities comprising the consolidated Funds classified as held for sale are as follows at September 30, 2020 (in millions):
September 30,
2020
Cash and cash equivalents$0.8 
Investments, at fair value112.9 
Other Assets0.6 
Consolidated Funds’ assets held for sale$114.3 
Accounts payable and accrued expenses$0.1 
Consolidated Funds’ liabilities held for sale$0.1